Oxygen Synergy For Hydrogen Production - Topsector Energie

Vision: from grey production to green supported by blueThe transition towards a green hydrogen future, will start atgrey hydrogen and will be supported by blue hydrogen.The adoption of hydrogen as a decarbonization solution forseveral different sectors will only work if hydrogen is readilyand cheaply available.Currently, there isn't such an abundance of wind and solarpower that green hydrogen can be produced in largequantities. To start reducing CO2 emissions as early aspossible and start using hydrogen, blue hydrogen couldpave the way for the hydrogen economy. Blue hydrogen isrelatively cheap and the technology for large scaledeployment is already available. The hydrogen mix willgradually become greener, as electrolyzers replace bluehydrogen production.However, for this green hydrogen future it is essential tostart the production of green hydrogen now in order toextend the duration of the learning curve and have a higherchance of meeting the targets for cleaner energy and lowerproduction costs by 2050.Three hydrogen routes will coexist in the coming decades3Route to upscale sustainablehydrogen productionEmission-free -free fromnatural gas and CCS20402050Public 15

Electrolyzers produce hydrogen and as a byproduct oxygen;Oxygen is the second largest industrial gas, with various applicationsAn electrolyzer produces hydrogen from electricity withoxygen as a byproduct.The general equation governing an electrolyzer is thefollowing:2𝐻2 𝑂 ՜ 2𝐻2 𝑂2Oxygen is produced as a byproduct and is typically vented intothe air. However, having 3-4 GW of electrolyzers in theNetherlands in 2030 would result in an oxygen production ofroughly 1.8 to 2.4 million tons of oxygen per year (considering4000 full load hours). This would be roughly half of the Dutchindustrial oxygen sales in 2018, about 3.9 million tonnes.1Following nitrogen, oxygen is the most used industrial gas. In2006 the worldwide capacity for oxygen production was 1.2million tons per day.2 This capacity stems from Air SeparationUnits or ASUs.Oxygen is mainly used in the metal sector and in chemicalprocesses. Networks of pipelines for oxygen transport exist inthe Netherlands. The oxygen can be stored in cryogenicoxygen tanks.An oxygen network in Belgium and the NetherlandsOxygen tanksSource: AirLiquideSource: Linde1: CBS statline, Verkopen; industriële producten naar productgroep (ProdCom), geraadpleegd 17-10-20192: rt/1277.articlePublic 16

Oxygen synergy leads to cost reductions and energy efficiencyOxygen synergy and the hydrogen accelerator as an example.As described, the production of green hydrogen results inlarge amounts of oxygen as a byproduct. Oxygen synergy isthe use of the oxygen in another process. Usually, oxygen isproduced by an Air Separation Unit (ASU). The expectedbenefits are therefore twofold. Firstly, no grid electricity isrequired to run the ASU. This is an advantage in terms of bothcosts and energy efficiency. Secondly, less ASU capacity isrequired, which is a cost advantage.This project investigates the use of oxygen in the production ofblue hydrogen: multiple blue hydrogen initiatives intend to useAutothermal Reforming (ATR) to produce hydrogen, a processthat requires large volumes of oxygen.Overview of the hydrogen acceleratorOXYGEN SYNERGY Synergy by oxygen exchange Cost efficiency and energy efficiency Production of blue and greenhydrogenASUO2Intended advantages of oxygen synergyReduced demandgrid electricityCO2 emissionsCostsO2Reducedsize uralgasPublic 17

Objective is to determine the techno-economic feasibility and nextsteps to implement this oxygen synergyOne objective is to examine the technological and economicalfeasibility of oxygen synergy between green and blue hydrogenproduction.Chapter 2Role ofhydrogenThe possiblerole ofhydrogen invariousapplications isshown.Chapter 3Componentsfor oxygensynergyChapter 4Cases: oxygensynergyappliedAnother objective is to map next steps for oxygen synergy, inorder to bring this idea from the drawing board to reality.Chapter 5DemonstrationprogramChapter 6InstitutionalframeworkIn order to bring this idea from the drawingA model was developed to examine theboard to reality, two topics were researchedtechno-economic feasibility. The inputs forbased on desk research and validated bythe model originate from desk research andexperts in a workshop.meetings with experts, concerning allA demonstration case is developed with antechnical components of the value chain.Multiple cases were developed to test the accompanying test program to structure thedevelopmental phase of this technology.outcomes to different market conditionsThe institutional framework was drawn,(retrofit / greenfield development) andbasedon limitations for this synergy and thestages of the hydrogen economy.hydrogen economy in general.Chapter 7Conclusionsand spin-offConclusionsare drawn andcoupled to themultiplehydrogeninitiatives in theNetherlands.Public 18

2Role of hydrogenPublic 19

Chapter 2: the role of hydrogenChapter 2Role ofhydrogenChapter 3Chapter 4Componentsfor oxygensynergyCases: oxygensynergyappliedResearch objectives: Comparing hydrogen and otherroutes to decarbonize. Investigating whether theproduction of blue and greenhydrogen will coexist.Chapter 5DemonstrationprogramChapter 6InstitutionalframeworkChapter 7Conclusionsand spin-offMain conclusions: Hydrogen has a role to reduce emissions for applications which havelittle or no other decarbonization options. Hydrogen should be limited to these applications, due to the high costsand operational efficiency to produce it. The upcoming decennia, blue and green hydrogen will coexist andhence the green oxygen can be used in the blue hydrogen process.Public 20

Hydrogen is not the cheapest option in realizing energy transition, butit is also not the most expensive For CO2-reduction in the industry there are cheaper optionsthan hydrogen The marginal cost price of green hydrogen is 5-6 /kg.Compared to natural gas, the cost of using hydrogen as asource of energy is about 8-9 times as high. This leads to aCO2-abatement cost of 543 - 668 /ton CO2. The costs for blue hydrogen are projected in the H-visionproject. The projected avoidance costs of 86-146 /ton CO2are significantly lower than green hydrogen. Though, options like energy saving and some electrificationand high-purity CCS options have lower avoidance costs. but there are also CO2-measures being taken that are moreexpensive. The average CO2 abatement costs of all projects withSDE( )-subsidy as of January 2019 is 303 /ton CO2 The abatement cost for the construction of heat networks290 /ton CO21 The abatement cost for a per kilometer-tax for personaltransport is even higher at 490 /ton CO21Avoidance costs of options in the Rotterdam-Moerdijk regionSource: In drie stappen naar een duurzaam industriecluster Rotterdam-Moerdijk in 20501. PBL, 2018, Kosten energie- en klimaattransitie in 2030 – update 2018Public 21

but hydrogen is a solution for applications that are difficult todecarbonize Overview of the applicability of solutions for energy transition in different sectorsHydrogenElectrificationGeothermal energyBiomassApplicable for allbuilding typesRequires insulationand floor heatingDepending onsuitability subsurfaceApplicableMobilityApplicable for allmodes and distancesLess suited for longdistance transportIndustryApplicable both asfuel and feedstockOnly suitable for lowtemperature heatOnly suitable for heatup to 250 degreesApplicable both asfuel and feedstockOnly applicable forparticular industriesApplicable for bothbase- and part-loadOnly applicable forbaseload plantsBuilt environmentElectricity productionApplicable for bothbase- and part-loadPost-combustion CCSPublic 22

and all solutions have their own limitationsGreen hydrogen Green hydrogen requires surplusrenewable electricity, which is notavailable yet. The costs of green hydrogen are high,and scalability of electrolyzers islimited. Large scale developmentsdepend on innovations.Blue hydrogen Blue hydrogen depends on carboncapture and storage (CCS). Furthermore natural gas is thefeedstock of blue hydrogen.Therefore, it is dependent on thenatural gas price and costs for CCSneed to be taken into account.Geothermal Not all locations are suitable forgeothermal energy. For example, thereis a risk of earthquakes in developinggeothermal energy. Drilling a geothermal well is CAPEXintensive and risky. Before drilling, it isunclear how much heat will come froma source.Electrification The electrical infrastructure has abackbone of only 25 GW. A largeemphasis on electrical solutions willrequire expensive extra infrastructure. The availability of renewable electricitydepends on the weather conditions.This imposes challenges for integrationin the energy system.Biomass The Dutch potential for biomass islimited to approximately 250 PJ in2050. If the demand exceeds theDutch production, biomass will beimported from abroad. Furthermore energetic use ofbiomass will always compete withbiomass as a raw material.Post-combustion CCS For post-combustion CCS, investmentshave to be made for installations in theindustry. This will make the CCS systemless flexible: investments could becomesunk costs. It is not possible for all processes: forits economic viability depends on largepoint streams of CO2 and high full loadhours of the equipment.Public 23

Hydrogen should play a role indecarbonizing applications whichhave little alternativedecarbonization methodsExamples of applications with little alternatives:- Industry: industrial processes which require hydrogen as afeedstock should be decarbonized. Furthermore, processesrequiring high temperature heat have few decarbonizationoptions.- Built environment: peak supply of heat has little otheroptions to decarbonize. Two methods exist to supply thispeak demand. Firstly, it can be done by installing hydrogenrun peak boilers in heating networks. Secondly, hybrid heatpumps with hydrogen-run boilers can be installed inindividual houses.- Transport: Long distance transportation has littlealternatives, since electrical solutions are less obvious.Therefore, public transportation, truck transport, shippingand aviation are interesting market segments for hydrogen.Hydrogen is not the holy grail for the energy transition, but alarge market is foreseen where hydrogen is a likely solution.Public24

3Components for oxygen synergyPublic 25

Chapter 3: Components for oxygen synergyChapter 2Role ofhydrogenChapter 3Chapter 4Componentsfor oxygensynergyCases: oxygensynergyappliedResearch objectives: Investigate the workings of thecomponentsChapter 5DemonstrationprogramChapter 6InstitutionalframeworkChapter 7Conclusionsand spin-offMain conclusions: All components are known in enough detail in order to model oxygensynergyPublic 26

ComponentsOxygen synergy needs several components each with theirown particularities.These components are important, because of the role theyplay in our study: Electrolyzers: produce both H2 and O2 and are therefore thestart of the hydrogen accelerator and other possible oxygensynergies. Cryogenic Air Separation Units (ASU): the industry standardfor oxygen production. O2 transport by pipelines: to let the oxygen flow fromelectrolyzer or ASU to the ATR. Auto-Thermal Reforming (ATR): one of the techniques toproduce blue hydrogen, this process needs oxygen typicallyproduced by an ASU but possibly by using oxygen from anelectrolyzer; we call oxygen synergy with an ATR: thehydrogen accelerator. O2 integration considerations: in the combination ofcomponents some considerations arise.Each component is discussed in further detail in the rest of thischapter. O2 compression: the oxygen needs to be compressed inorder to feed the ATR process. Liquid O2 storage: to maximize the possibilities of oxygensynergy buffering of oxygen in liquid form is essential.Public 27

H2 & O2 production by electrolysis (1/3) Electrolysis is the process through which(high purity) hydrogen is produced fromwater and electricity. There are several electrolysis optionsavailable. Find below the most maturetechnologies:- Alkaline electrolysis (most mature)- Proton exchange membrane electrolysis- Solid oxide membrane electrolysis While operating with differentfundamental principles and under differentconditions, all three co-produce H2 andO2.P. Millet, S. Grigoriev, Water Electrolysis Technologies,in Renewable Hydrogen Technologies, 2013Public 28

H2 & O2 production by electrolysis (2/3) Simplified process flow diagram for an alkaline electrolysis plant that delivers both H 2 and O2: Although the electrolysisstack itself is the heart of theprocess, it only represents arelatively small fraction of anentire production plant, interms of footprint. On volume basiselectrolyzers producehalf as much O2 as H2,but on mass basis O2production is eighttimes higher.Tom Smolinka, Emile Tabu Ojong and Jürgen Garche, Electrochemical Energy Storage for Renewable Sources andGrid Balancing, 2015, Chapter 8 - Hydrogen Production from Renewable Energies Electrolyzer TechnologiesPublic 29

H2 & O2 production by electrolysis (3/3) A substantial decrease in associated CAPEX for all three technologies isexpected for the next decade. Efficiency per installed MWel will not vary much for mature technologies(SOE is still demo scale).Efficiency H2 & O2 Technology[tpd H2·kWhel-1] Footprint (rough indication) of large scaleelectrolysis plants: 30-100 MW/ha (includingutilities, substations, compressors etc.)Estimated CAPEX per installedcapacity[ ·kWel-1]0.8040000.7050 MW AEL configurationSource: Nel brochureEfficiency[tpd rrent20002025-203010000.1000.00AEL1, 2PEM1, 2SOE1AEL 1, 2PEM1, 2SOE1(1) Schmidt, O. et al (2017). Future cost and performance of water electrolysis: Anexpert elicitation study. In International Journal of Hydrogen Energy 42, 30470-30492(2) IRENA. (2018). Hydrogen From Renewable Power: Technology outlook for theenergy transition. Retrieved from www.irena.org25 MW PEM configurationSource: Hydrogenics brochurePublic 30

Increasing the load hours of the electrolyzer is beneficial to oxygen synergy, but infuture electricity markets it might not be for the electrolyzer business case. The synergy becomes higher when the electrolyzer isoperating with more load hours, because the production of(green) oxygen is increased. Load hours can be increased intwo ways compared to the current configuration, wherethere is an offshore wind park with 3500 full load hours.- Option 1: adding solar energy to the supply mix.- Option 2: connecting the electrolyzer to grid electricity,which consists of also fossil energy. In reality the business case of the electrolyzer improves upto a certain point. Running the electrolyzer for an entireyear, which comes down to 8760 load hours, results inpaying a higher energy bill, because more expensiveelectricity prices are also included. With a dedicated windpark there are about 3500 load hours. The sweet spot issomewhere in between 3500 – 8760 load hours. The business case for the entire electrolyzer depends on thecurrent energy system and the associated market conditions,such as electricity prices. A study showed that with 2018market conditions, minimal costs occur at 8050 load hours.With 2025 market conditions, this figure lies at 7500 loadhours. In 2040, the load hours are even lower at 6710(Enpuls, DNV GL and TNO).- The major assumption is that there will be more volatilityin the future energy system. The price curve will besteeper. So there will be times when electricity is a lotcheaper, but also where it is much more expensive. Thesemore expensive prices drive down the load hours of theelectrolyzer, because these deteriorate the business module-1- technologiebeoordeling-groene-waterstof- -enpuls.pdfPublic 31

Cryogenic air separation units (1/2) Cryogenic air separation is a very well knownand widely deployed technology and theindustry standard for large volume oxygenproduction. Single train ASUs can have capacities of upto 6,000 tons per day of O2. Fundamentally, air separation units operateon the principle of cooling based oncompressionandexpansioncycles,combined with distillation. The specific power demand is approx. 175245 kWh/t O2, depending on plant CAPEX,O2 purity, O2 delivery pressure and coproducts.Source: Air Liquide websitePublic 32

Cryogenic air separation units (2/2) Conventional ASU designs have typical operating ranges between 70-105% oftheir nominal capacity.- Cold boxes are designed for 50% turn-down, but operating below 70%leads to a higher specific energy use due to inefficient air compressoroperation. Within that range, ASUs can be operated flexibly with ramp-up / ramp-downrates of 2-3% / min. Together with liquid oxygen storage, this flexibilityenables combining co-produced O2 from an electrolyzer with O2 producedby an ASU. The following ASU parameters were used for this study:- 200 M CAPEX for a 240 t/h O2 plant (H-vision reference) and a scale-upfactor of 0.65- Specific power required: 210 kWh / metric ton O2- LOX production: 10% of total capacityASUs at the Pearl GTL plant in Qatar (source: Linde)Public 33

O2 transport by pipeline There are no special requirements for transporting O2. Carbon steel pipelinescan be used. In the Benelux region there is already a pipeline network in place for the longdistance transport of O2. Several authors have reported cost models as a function of diameter fornatural gas, CO2 and H2 pipelines (three models from literature arecompared in the chart on the right). For short lines some models expect higher costs, but there is no overallagreement that this is the case. Therefore we did not take this into account inour model. For further researc

ATR Natural H2 gas O 2 ASU Electricity. Public . extra cost, - saving) Effect on OPEX (- is a saving) Total cost (- is a saving)* . Industry: feedstock, steelmaking, fuel for high temperatures Mobility: long distance transport Electricity: balancing intermittent sources of electricity